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Quoted Micro 18 September 2023
AQUIS STOCK EXCHANGE
An update on the Amapa iron ore project in Brazil from Cadence Minerals (LON: KDNC) says permitting times for the mine and related logistics should be reduced to 12-16 months. An environmental control plan is required to obtain the permits. This will enable a funding decision for the project. Investee company Hastings Technology Metals has expanded its offtake agreement with thyssenkrupp Materials Trading, which will take two-thirds of production from the Yangibana rare earths project.
Invinity Energy Systems (IES) has converted an existing order from Taiwan to its next generation Mistral flow battery. This is a higher margin product targeted at large wind and solar applications. Management is securing additional production capacity with Taiwan partner Everdura.
EPE Special Opportunities (ESO) had net assets of 308p/share at the end of July 2023. Investee company Rayware’s sales have been hit by weak consumer demand. Pharmacy2U continues to grow. Two investments have been sold. Ther was cash of £16.3m at the end of July 2023.
Financial services company Eight Capital Partners (ECP) says its 2021 figures have been restated because of a change in the accounting treatment of the bonds. Non-cash transactions have been removed from the cash flow statement. The book value of the bonds has been changed to fair value and a modified loss recognised on loan liabilities. Net liabilities were £11.4m. The 2022 results show net assets of £25.3m after a debt conversion to equity. A partial reversal of previous fair value adjustments also helped.
Coinsilium Group Ltd (COIN) is providing a convertible loan of $50,000 and has a 12-month option to subscribe for $500,000 for shares in Silta at a pre-money valuation of $7.5m. This means that it could end up with 6.7% of Silta. Last year, Coinsilium entered into an early contribution agreement to buy $75,000 of SILTA tokens. Silta is developing an advanced AI platform for sustainable infrastructure financing.
Hydro Hotel, Eastbourne (HYDP) is paying an interim dividend of 12p/share.
Rod Weinberg has reduced his stake in SulNOx Group (SNOX) from 6.35% to 2.49%. Macaulay Capital (MCAP) managing director David Horner has bought 200,000 shares at 22.5p each. Nigel Pope has taken a 3% stake in NFT Investments (NFT). Gathoni Muchai Investments has trimmed its stake in Marula Mining (MARU) from 12.2% to 11.26%. A warrants subscription at 4p each raised £30,500.
Black Sea Property (BSP) has raised €4.44m from a loan note issue, which is being used to pay for the recent acquisition of a majority stake in Grand Hotel Varna, which owns three hotels and a beach marina resort, plus a mutual fund portfolio. There is still €15.5m to pay.
AIM
Parcel delivery and logistics company DX (DX.) has received a bid approach from private equity firm HIG European Capital Partners. Gatemore Capital Management, which owns 16.8%, says it is willing to support the proposal of 48.5p/share. Management had rejected lower bids, but it would be minded to recommend this one. Due diligence will be required.
Online gaming firm Gaming Realms (GMR) reported interim revenues 35% higher at £11.5m and a 74% increase in pre-tax profit to £2.4m. The licensing business drove the growth. North American revenues increased by 47% and there are more states likely to ease restrictions on online gaming. Growth is coming from moving into new markets and adding new games. There are upfront costs to the expansion, holding back short-term profit. Net cash is expected to be £8m at the year end
Iodine producer Iofina (IOF) increased interim revenues by 27% to $24.3m, while pre-tax profit improved from $2.6m to $4.7m. First half iodine production was 242Mt. Iofina commenced production at its IO#9 plant in Oklahoma at the end of the half year. This is the sixth plant in operation and will help boost second half production to 325-350Mt.
Contract research and infectious disease study services provider hVIVO (HVO) is moving into larger London premises in Canary Wharf. The latest interims have led to an upgrade of guidance for the full year and hVIVO intends to pay a nominal dividend for 2023. Interim revenues were £27.3m, up from £18m, and the full year outcome is expected to be £55.1m with most of the rest of the revenues already contracted.
Construction and property software supplier Eleco (ELCO) increased like-for-like interim revenues by 5% to £13.5m. More importantly, recurring revenues were 18% ahead at £9.7m. This indicates the success of the move to SaaS-based revenues which has held back progress in the short-term. Net cash could reach £10.8m by the end of 2023.
Mkango Resources (MKA) subsidiary HyProMag, which is a short loop rare earth magnet recycler, is participating in a grant funded project called RE-RE Wind, which is designed to provide a circular supply chain for rare earth magnets for wind turbines. The first generation of wind turbines are coming up to the end of their life and a decommissioning programme is required.
Payments services provider Cornerstone FS (CSFS) made a small maiden interim profit. The move into profit was earlier than expected. Interim revenues were 90% ahead at £3.6m and most of this is direct business rather than through third parties. The overheads were held down enabling more of the additional revenues to flow through to profit. Cash is being generated from operations.
Online gaming company B90 Holdings (B90) has raised £2m at 5.44491p/share. The cash will go towards funding acquisitions and further investment in existing assets. The company is also converting £4.73m of loan notes and interest into 86.8 million shares. Enwys, which acquires customers for online gaming companies, has been bought. There are more than 20 other acquisition targets.
Keystone Law (KEYS) is paying a special dividend of 12.5p/share on top of the interim of 5.8p/share. Underlying pre-tax profit was one-quarter ahead at £5.7m, while net cash was £11.3m at the end of July 2023. Interest from new principal lawyers is increasing and 25 offers were accepted in the first half. There is plenty of back office capacity for additional lawyers.
Communications technology developer Feedback (FDBK) is taking time to secure new deals, but they should be on the horizon. The community diagnostic centres contract with the Queen Victoria Hospital has been delayed, but hopefully it should be secured by the end of the year. Feedback is still loss making, even though full year revenues were 74% ahead at £1.02m. The cash outflow, including capitalised development costs, was £3m and the £7.3m in the bank should last more than two years.
North Sea oil and gas producer IOG (IOG) has been told by the authorities that the Nailsworth P2342 and P130 licences are not going to be extended and this could have a negative commercial impact on the potential for the Elland licence. Bondholder discussions continue and the waiver lasts until 29 September. There was £14.5m in cash at the end of August, including £7.3m of restricted cash. There was stable production from Blythe H2, but the realised gas price was lower.
The Property Franchise Group (TPFG) has offset lower revenues from property sales by increasing lettings revenues. Overall interim revenues were 1% ahead at £13.2m. The higher tax rate meant that earnings slipped 2% to 13.8p/share despite an increased profit. The interim dividend was increased by 10% to 4.6p/share.
US-focused betting company Sportech (SPO) plans to leave AIM. It says the burden of time and money is too great. A circular will be sent out to gain shareholder approval at a general meeting.
Bushveld Minerals (BMN) has signed a binding term sheet for a potential $69.5m-$77.5m investment by Southern Point Resources. This includes the acquisition of 50% of Vanchem and 64% of the Mokopane project, plus a $12.5m investment in Bushveld Minerals. There will also be a working capital facility provided. Southern Point Resources will take over marketing and sales of vanadium and other products. The stake disposals will lead to a book loss of $59.6m.
Animal feed ingredients supplier Ocean Harvest Technologies (OHT) raised interim revenues by 43% to €1.8m and gross margins jumped to 36%. Investment in marketing and other aspects of the business meant that the loss was flat at €1.3m. These additional costs should help to generate further sales growth of its seaweed-based feed. Field trials could add up to €13m to annual revenues. However, delays in these trials mean that full year revenues have been downgraded from €4.3m to €3.4m. There should be net cash of €2.9m at the end of 2023.
MAIN MARKET
The FCA has approved the takeover of Lookers (LOOK) by Alpha Auto Group. The bid is 130p/share.
On The Beach (OTB) says its full year results will show record revenues and the holiday company says pre-tax profit will be at the top end of expectations. In the year to September 2022, revenues were £144.1m, which was slightly higher than the pre-Covid level of £140.4m, and underlying pre-tax profit was £14.1m. Consensus forecasts for 2022-23 were revenues of £179.5m and pre-tax profit of £22.6m. The guidance suggests that profit should be slightly higher than that. Even so, underlying pre-tax profit in 2017-18 was higher at £27.6m.
Andrew Hore
Quoted Micro 8 May 2023
AQUIS STOCK EXCHANGE
Four shareholders owning a 19.4% stake have requisitioned a general meeting at TruSpine Technologies (TSP) on 31 May. They want four directors to be removed: Norman Lott, Nikunj Patel, Annabel Schild and Laurence Strauss. The only director they are not seeking to remove is Timothy Evans. They also want three nominees to be voted onto the board, which includes two of the requisitioners Peter Houghton and Todd Michael Cramer, as well as Anthony Swoboda. The board recommends voting against the resolutions. There are also disputes with the inventor of the company’s main technologies and the requisitioners talk about negotiating a new licence.
Music artist management and services provider All Things Considered Group (ATC) reported better than expected 2022 figures and managed to make a £10,000 pre-tax profit. A £300,000 loss had been expected. Stripping the deconsolidated Driift out of the figures, continuing revenues more than doubled from £4.5m to £9.45m. The share of the Driift loss will continue to hold back profit, but Canaccord Genuity forecasts a 2023 pre-tax profit of £200,00. That is on reduced revenues of £7.7m because of the deconsolidation of Driift and the one-off commission for facilitating the Napster reversal deal in 2022.
One Health Group (OHGR), which provides funded medical procedures, says results will be ahead of expectations. There was a 16% increase in patient referrals from the NHS and additional capacity is being brought on stream for weekend operations. New surgical hubs are being planned. Net cash was £3.3m at the end of March 2023.
SulNOx Group (SNOX) has diversified into the demulsification market through developing a product with Cleaner Fuel Solutions in South Africa. The new product reduces the time taken to separate water and oil from toxic waste oil.
Ananda Developments (ANA) says that the highlight of last month was the quality of the cannabis plants grown from second-generation seed genetics. They are better than the plants developed from clones. MRX1 unlicensed medicinal cannabis oil is set to be listed in three medicinal cannabis clinics.
Cadence Minerals (KDNC) says investee company Hastings Technology Metals has hired GR Engineering Services as engineering, procurement and construction contractor for the Yangibana rare earth project. The overall cost is $210m, which is lower than previously estimated. First concentrate delivery should be in the first quarter of 2025.
KR1 (KR1) had net assets of 61.29p a share at the end of March 2023. The income from digital assets was £583,000 during March.
Vulcan Industries (VULC) generated first quarter revenues of £197,000 and the loss was £383,000. The original businesses have been sold and a battery project acquired during March.
Fenikso Ltd (FNK) has received the latest payment of $614,000, which leaves the remaining loan at $49.9m. The next payment is at the beginning of June.
Semper Fortis Esports (SEMP) has changed its corporate adviser and broker to Novum Securities.
AIM
Japan Petroleum Exploration is acquiring a 49.9% stake in the Norway-based subsidiary of Longboat Energy (LBE) in return for a cash injection of $16m, plus a finance facility of $100m. There is a further contingent cash payment of $4m linked to an acquisition. If there is a discovery at Velocette then up to $30m more cash could be injected by the new partner.
Retailer Mothercare (MTC) beat the finnCap EBITDA forecast with an outcome of £6.5m-£7m in the year to March 2023. Excluding Russia, sales improved during the year. There is still destocking going on. The pension deficit has fallen to £39m and there is a full review in the autumn.
Cambridge Cognition (COG) made a small loss in 2022, but the recently acquired Winterlight Labs, which develops machine-learning based voice assessment using free-speech inputs, will significantly increase the loss this year. However, the deal enhances the company’s voice-based technology and provides cross-selling opportunities. Organic revenues are expected to grow by 10% in 2023.
Building and plumbing products distributor Lords Group Trading (LORD) reported better than forecast figures even though they were upgraded in January. The merchanting division grew like-for-like sales by 17%, more than offsetting a like-for-like dip in plumbing and heating revenues due to boiler component shortages. On top of this acquisitions helped revenues grow by 24% to £450m, while pre-tax profit improved from £12.3m to £17.4m. Profit growth is likely to be more modest this year.
Life sciences company Aptamer Group (APTA) says that potential deals are slow in converting into commercial projects and it will require more cash. In the ten months to April 2023, revenues were £1.4m and Liberum has slashed its full year forecast from £5m to £1.8m, down from £4m last year. The monthly cash outflow is £500,000 and costs are being cut. That could cut the cost base to £4.5m. Net debt is expected to be £1m at the end of June 2023 and £2.5m is estimated to be required to be raised to get the company to June 2024.
Supercapacitors designer CAP-XX (CPX) has raised £2.5m at 1.3p a share. Anthony Kongats is stepping down as chief executive, although he has subscribed for new shares. A retail offer that could have raised up to £500,000 generated £180,000. The cash will fund product development and marketing.
Graphite technology developer Versarien (VRS) is raising £532,000 at 1.25p. The cash will pay for commercialisation of products and fund working capital. More cash will be required and the fall in the share price will not help. A new strategic plan will be published in a few weeks and the mature cutting tools business may be sold.
Solgenics (SGN), formerly known as Ncondezi Energy, intends to leave AIM. Management does not feel that the quotation is effective for such a small company with a lack of liquidity, and it wants to focus on the Tete solar project. A working capital loan has been agreed in principle with directors. This represents a recovery on the initial share price decline after non-exec director Scott Fletcher acquired 31.4 million shares, taking his stake to 27.3%.
Argos Resources (ARG) also plans to leave AIM. JHI Associates will acquire the PL001 production licences in the North Falkland Basin in return for 8.47 million shares and £303,500 in cash. This would turn Argos Resources into a cash shell and requires shareholder approval. After settling with creditors, there should be eight million JHI shares to distribute to Argos Resources shareholders. Westmount Energy (WTE) owns 7.2% of JHI and it also owns one million shares in Argos Resources.
The NHS is funding the accelerated implementation of Lipid inCode, which has been developed by GENinCode (GENI). This follows a pilot programme. The funding is part of a strategy to identify one-quarter of patients with familial hypercholesterolaemia. Lipid in Code is faster than existing tests and provides additional data.
MAIN MARKET
Engineer Goodwin (GWIN) is making a tender offer for up to 180,000 shares at £48 each, which is a 25% premium to the previous market price. Qualified shareholders have a guaranteed entitlement to tender 2.34% of their shareholding if they wish to accept the tender.
Lookers (LOOK) is acquiring Chelmsford-based motor dealer Waterhouse Cars. This adds a Volvo dealership in Chelmsford and £2m will be invested in this site. Lookers also plans to invest £2.3m in its existing Colchester Volvo dealership.
National World (NWOR) has bought business information provider Insider Media. It has also acquired the Rotherham Advertiser.
Andrew Hore
Quoted Micro 13 March 2023
AQUIS STOCK EXCHANGE
Ananda Developments (ANA) is acquiring MRX Global, which has invented a method to formulate cannabis medicines, for £2.02m in shares at 0.3p each. The first formulation is MRX1, which will be used in two phase II randomised controlled trials to investigate the effectiveness of cannabidiol in chemotherapy induced peripheral neuropathy and in patients with endometriosis. These trials have £1.55m of grant funding. Directors of Ananda are shareholders in MRX, so the deal requires shareholder approval. These directors will a 3% royalty on net sales of any commercial products sold by MRX. Ananda has raised £326,000 through a subscription at 0.3p a share and there is a broker option that could lead to the issue of 33.3 million shares at the same price. Charles Morgan has converted convertible loan notes into 747.3 million shares at 0.3p each. Charles Morgan and Melissa Sturgess will own 53.8% of the company.
Altona Rare Earths (ANR) has raised £2m at 5p a share, which is more than the £1.25m it was initially seeking. This is part of the move to the standard list on 20 March. A maiden JORC compliant mineral resource estimate and a scoping study for the Monte Muambe rare earths project in Mozambique. Altona is increasing its stake in the project from 20% to 51%.
Vulcan Industries (LON: VULC) is acquiring Forepower Lincoln (250) Ltd, which has a 240MW lithium-ion battery storage project, for £2.6m in shares at 1p each. This means that Britt Foreman of Forepower Lincoln (250) Ltd has a 29.9% stake in Vulcan. The two companies have been working together for the past year and Vulcan can help to raise the finance for the project. There are plans to raise more cash to settle liabilities of £250,000 and continue to develop the project.
Invinity Energy Systems (IES) has sold a 220KWh VS3 flow battery to Dawsongroup, following a sale earlier in the year. STS Group and project partner Ideona have been appointed to deploy Invinity Energy batteries in Hungary, primarily for co-located solar and grid support projects.
Hot Rocks Investments (HRIP) published 2021-22 figures and interim figures to September 2022 and trading in the shares was restored. Net assets are £526,000. On 3 March, cash was £70,000. Optiva has been appointed as corporate adviser.
CBD products supplier Yooma Wellness Inc (YOOM) continues to restructure its operations, but it is still trying to find a way of moving the business forward. Following the exit from many businesses, the remaining businesses are in Europe. Yooma Wellness may have to sell other businesses if additional funds are not secured.
EPE Special Opportunities (EO.P) had an NAV of 334p a share at the end of January, which was a 27% decline. The decline in the Luceco (LUCE) share price was a major factor even though this stake has been reduced in recent years. Rayware was another poor performer. Quoted shell company Epic Acquisition Corp is reviewing acquisitions. An investment in dog snacks company Denzel’s was completed in October. Investments in Atlantic Credit Opportunities Fund and Prelude Structured Alternatives Master Fund.
Guanajuato Silver Company Ltd (GSVR) says a US institutional investor has acquired 24 million shares from Great Panther Mining and its other shares were bought by other investors.
Rogue Baron (SHNJ) says Shinju premium Japanese whisky won a gold medal at the 2023 LA Invitational Wine and Spirits Challenge.
Pioneer Media (PNER) has left the Aquis Stock Exchange.
Marula Mining (MARU) has appointed Peterhouse as broker, replacing OvalX.
Music artists and events company All Things Considered (ATC) won the agent of the year award at the International Live Music Conference Gala Dinner.
Begbies Traynor has been appointed administrator to Love Hemp.
AIM
A positive trading statement by NWF (NWF) has led to a forecast upgrade for 2022-23. Peel Hunt increased its pre-tax profit forecast by 42% to £17.5m, compared with £20.9m last year thanks to a bumper year for fuel distribution. The expected downturn in fuels profitability has not been as sharp as previously thought and the food distribution and feeds divisions are also doing better than expected. Net cash of £5.5m is anticipated at the end of May 2023 and there are borrowing facilities of £65m. This leaves plenty of scope for further add-on acquisitions of fuel businesses.
Franchise Brands (FRAN) reported better than expected 2022 pre-tax profit up from £6.5m and £12.8m and it plans to sell its B2C franchise businesses. The Filta business made a 10-month contribution last year. Net cash was £8m at the end of 2022 and the B2C businesses, which could be sold separately or in one disposal, will generate more cash. The next acquisition will be in the B2B area, and it is likely to be significant.
Gelion (GELN) is acquiring Johnson Matthey’s lithium sulfur and silicon anode patent portfolio for £4.25m. This will help Gelion to increase gravimetric energy density for its batteries and enable faster commercialisation of lithium sulfur technology. Gelion plans to sell the silicon anode patents and could receive around £1.25m for them.
Data analysis technology provider WANdisco (WAND) was considering a US listing, but it has discovered accounting problems leading to a suspension of share trading.
Steel structures supplier Billington (BILN) sparked a forecast upgrade with its trading statement. Not only were 2022 profit and cash better than expected, 2023 momentum is ahead of estimates. The 2022 pre-tax profit has been upgraded from £5.3m to £5.8m, while the 2023 figure is increased by £1m to £8m. The 2022 dividend is expected to be 15p a share.
In The Style (ITS) has completed a strategic review and is proposing the sale of its operating business for £1.2m and the cancellation of the AIM quotation. The online retailer is losing money and running out of cash. The purchaser is Baaj Capital, which has other fashion-related investments, including Officers Club. Chief executive and founder Adam Frisby will continue to run the business and take a stake. The company will change its name to Itsum.
Aferian (AFRN) says customer destocking of streaming devices has hit sales and they will be significantly lower than expected for this part of the business. Streaming video services provider 24i continues to grow. There should still be a positive EBITDA this year. The annualised cost base is being reduced by $5m. Annual results to November 2022 will be delayed while discussions with banks continue over future covenant compliance. At the end of 2021, Aferian secured a $50m loan facility from three banks, including Silicon Valley Bank, which lasts until 23 December 2024. BLOE
Gold explorer Panthera Resources (PAT) has entered into a conditional arbitration funding agreement with a subsidiary of Litigation Capital Management (LIT) for the damages claim against the Republic of India for breaches of its obligations under the Australia-India bilateral investment treaty. Up to $10.5m will be provided to cover the costs of the claim.
Amur Minerals (AMC) has completed the sale of the AO Kun-Manie project in Russia to Bering Metals. The $35m consideration should be received soon. A 1.8p a share dividend is planned, and Amur Minerals will become a cash shell.
Purplebricks (PURP) has received approaches for the acquisition of the company, or its businesses and the ongoing strategic review has been widened to include a formal sale process.
MAIN MARKET
Networking and biomedical company BATM (BVC) reported a dip in full year revenues from $132.8m to $116.1m, partly due to a slump in Covid-related diagnostics income. Operating profit slumped from $11.3m to $3.7m. This was slightly better than expected. The networking and cyber division made a lower loss in 2022. There should be a recovery in revenues and profit this year. Moti Nagar has become chief executive.
Lookers (LOOK) has acquired vehicle hire and brokerage business Fourways Vehicle Solutions, which had revenues of £3.8m last year. This business could provide Lookers own rental requirements at lower cost.
Bluebird Merchant Ventures (BMV) has raised £1.22m at 2p a share to finance proof-of-concept funding at the Kochang gold and silver mine in South Korea. That is the same price as the previous placing. Production could eventually reach 5,000 ounces per annum. SI Capital has been appointed broker.
Andrew Hore
Quoted Micro 24 October 2022
AQUIS STOCK EXCHANGE
Chapel Down Group (CDGP) had a bumper grape crop in terms of quality and yield. Chapel Down has 750 acres of vines and the harvest was more than 2,000 tonnes, up from 1,400 tonnes last year, with a particularly good crop for sparkling wines. The English sparkling wine market grew by 29% in 2021More than two million bottles of many types of wine can be made from the harvest. A further 38 acres of vines were planted this year with 118 acres planned. More land is being sought. Management wants to double the size of the business by 2026.
Property investor Ace Liberty & Stone (ALSP) launched an open offer to raise £4.56m at 25p a share, which is a big discount to the market price. The share price fell 25.8% to 47.5p. The open offer closes on 14 November and enables existing shareholders to finance the strategy to buy additional properties. Management believes that economic uncertainty will provide opportunities to acquire high yielding properties.
Ananda Developments (ANA) has changed the acquisition terms for the 50% not owned in DJT Plants. The purchase price has been cut from £7.3m to £3.2m, which is payable in shares at 0.925p a share giving the seller Anglia Salads 29.9% of the enlarged share capital. That is double the current share price. The chairman’s £2.3m loan to Ananda will be swapped for convertible loan notes and warrants. DJT is analysing its 2022 field trial crops to determine the amounts of cannabinoids and terpenes contained in the cannabis flowers. This will help the company to decide which cultivars to use. There are international growers interested in purchasing seeds from DJT.
Love Hemp (LIFE) says it will sell all LH Botanicals products and LH Botanicals Ltd, which is owned by Love Hemp chief executive Tony Calamita, does not sell these products and has never traded. An application has been filed to strike the company off the company register.
Hydrogen Utopia International (HUI) has secured a convertible loan facility with Conrad Griffiths, owner of 9.45% of the company. The €650,000 facility is interest free until the beginning of 2023 when the annual interest charge is 5%. The repayment date is 31 December 2025. The conversion price is 20p – based on the exchange rate of €1.14/£.
Invinity Energy Systems (IES) has secured the sales contract for a 10MWh VS3 flow battery system for a solar microgrid in southern California.
Goodbody Health Ltd (GDBY) has signed an agreement with Allied Pharmacies that will add 17 clinics to its network offering diagnostic testing and adds services such as ear wax micro suction.
SulNOx Group (SNOX) has signed up South Africa-based bus company Lowveld Bus Service, which will use SulNOxEco fuel conditioner in its fleet of more than 170 buses.
VVV Resources (LON: VVV) has appointed Jim Williams as an executive director. He was previously a chief executive of AIM-quoted Arian Silver Corporation, which is now known as Alien Metals (UFO). David Rigoll and Simon Clarke have left the board.
Chris Akers has upped his stake in Quetzal Capital (QTZ) from 22% to 23.4%. Investee company Tap Global has added GBPT stablecoin to its cryptocurrency trading platform.
Harry Hyman has increased his stake in Oberon Investments Group (OBE) from 3.08% to 4.15%. Phoenix Asset Management Partners has taken a 16.5% stake in Silverwood Brands (SLWD).
AIM
Semiconductors designer EnSilica (ENSI) generated more than 50% of its revenues from its design and supply division for the first time last year. Revenues increased from £8.61m to £15.3m with design and supply’s contribution jumping from £2.82m to £8.02m. This is down to contracts starting to move from the design to supply stage. A loss was turned into a pre-exceptional profit of £165,000. That is before R&D tax credits of £683,000. EnSilica capitalised £2.2m of development spending last year.
Latest new AIM admission Sondrel (SND) raised £20m at 55p a share and the price rose to 58p in early dealings. The semiconductor designer will spend the money on employing more engineers and accelerate sales. There are more than £300m of revenue opportunities for designing semiconductors. If selected, Sondrel can expect to supply the semiconductor for five years plus. The medium-term target revenues are in excess of £100m.
Revolution Bars (RBG) is acquiring Peach Pubs for £16.5m. Peach Pubs has 21 food-led pubs in the south of England and the Midlands. There should be £1.5m of cost savings from combining the businesses at a minimal cost, but they will not be fully achieved until 2024-25. finnCap has adjusted its 2022-23 forecast for Revolution Bars due to higher energy costs, so the earnings estimate has been reduced by 69% to 0.5p.
Affimer technology developer Avacta (AVCT) is acquiring in vitro diagnostics distributor Launch Diagnostics for £24m, plus up to £13m in performance related earn outs. This acquisition is part of the strategy to build up a European distribution business. Kent-based Launch Diagnostics is a profitable business that supplies diagnostic reagents and instrumentation for pathology applications. A placing at 95p a share will raise £7m and a three-for-365 open offer could raise up to £2m more. A £55m convertible bond issued at 95% of par could raise £52.5m and it is convertible at a 25% premium to the 95p a share placing price.
Gear4Music (G4M) edged up interim revenues by 2% with the growth coming from Europe and the rest of the world. The musical instruments retailer is upgrading its websites and trading is improving, although gross margins are lower.
Tatton Asset Management (TAM) generated inflows of £907m in the six months to September 2022. Assets under management have reached £11.3bn, with a further £1bn of assets under influence. There was an 11% improvement in earnings to 9.8p a share and the interim dividend 10% ahead at 4.4p a share. Inflows are expected to slow and full year expectations have been trimmed, but earnings should improve from 18.6p a share to 19.8p a share.
Logistics Development Group (LDG) has raised its stake in cakes maker Finsbury Food (FIF) from 4.4% to 6.77%. A further £4.17 has been invested at an average of 81p a share. The previous investment was at 69.5p a share, which was just above the low for 2022. Richard Griffiths increased his stake in Logistics Development Group from 7.04% to 8.71%. Logistics Development Group should have received more than £31m for its stake in CareTech.
Learning and development products and services provider Mind Gym (MIND) generated interim revenues 11% ahead at £26.8m with the majority coming from the US. Net cash is £4.5m. The interims will be published on 2 December. A full year pre-tax profit of £2.87m is forecast.
Advanced Oncotherapy (AVO) has raised £6m at 25p a share from Odey Asset Management. The subscription was at a 12% premium to the market price.
Mattress supplier eve Sleep (EVE) has appointed an administrator.
Anthony Laiker has left the Vela Technologies (VELA) board and sold his 6% stake. He was reappointed to the board in July having been a director between 2013 and 2020.
MAIN MARKET
Kitchenware retailer ProCook Group (PROC) says revenues continued to decline in the second quarter, but the rate slowed and there has been growth in early October. Freight costs are falling offsetting the change in exchange rates. Fackelmann Gmbh owns a 9% stake.
LED lighting and wiring accessories supplier Luceco (LUCE) says destocking has happened faster than expected, so the 2022 profit outcome will be lower than anticipated. Underlying operating profit is expected to be £20m-£22m in 2022. Net debt was £46.5m at the end of September 2022.
Carclo (CAR) says interim sales were ahead of the same period last year and slightly better than expectations. However, operating profit is slightly lower than previously. The life sciences division has grown even though two product launches were delayed. There was also increased demand from the aerospace sector.
Motor dealer Lookers (LOOK) outperformed the UK car market in the third quarter and pre-tax guidance has been increased to no less than £75m. Last year’s pre-tax profit was £90.7m, but that benefited from government assistance and a strong used vehicle market. However, a lack of available new cars to sell is holding back the performance of all motor dealers.
An administrator has been appointed to Toople (TOOP) after it failed to secure financing for a proposed acquisition.
Andrew Hore
Quoted Micro 29 August 2022
AQUIS STOCK EXCHANGE
Thixotropic gels manufacturer Unigel Group (UNX) joined the Access segment of the Aquis Stock Exchange. The gels are used in the fibre optic industry. There was £800,000 raised at 64p a share. The share price ended the day at 65p.
Aquis Stock Exchange has issued a disciplinary notice to Love Hemp Group (LIFE) after omitting information in a fundraising announcement in February. It was not stated that not all the cash had been received and one investor did not pay the £1.2m it was supposed to for the shares. There was no update until May, thereby creating a false impression of the cash position. The £100,000 fine has been cut to £70,000 for early settlement. Trading in the shares remains suspended following the resignation of Peterhouse as corporate adviser. The board has been strengthened. A new corporate adviser is required for trading to recommence.
Hydrogen Utopia International (LON: HUI) is planning to enter a 50/50 joint venture with AIM-quoted Powerhouse Energy (LON: PHE) to develop a plant using non-recyclable waste plastic to produce hydrogen in Poland. Hydrogen Utopia International will be allowed to recover its costs of €250,000 with a €250,000 premium. This agreement is similar to the one between the companies for the proposed Tipperary plant, which will be built on a site leased by Trifol Resources. DXSP
British Honey Corporation (BHC) hopes to report its 2021 results before the end of September. This year’s trading has been tougher and the 2022 figures will be worse than expected with revenues of £6m.
Wishbone Gold (WSBN) has secured an option to acquire the Anketell gold copper project, which is north of the company’s Red Setter project in Western Australia. The option payment is £25,000. The consideration would be £50,000 in cash and 2.17 million shares at 14.75p each.
BWA Group (BWAP) has been granted a three-year licence for Nkoteng 2 at the Nkoteng heavy mineral sands project in Cameroon. This covers an additional 60km of strike length.
Evrima (EVA) has increased its holding in Eastport Ventures to 6.85%. Eastport also owns shares in another investee company, Premium Nickel, which has confirmed that saleable nickel and copper concentrates can be produced at the Selkirk mine in Botswana.
Capital for Colleagues (CFCP) has received an initial payment of £92,629 for the disposal of the stake in The Homebuilding Centre. This is higher than the £50,000 minimum payment because of strong trading.
Watchstone Group (WTG) had cash of £10.2m and £1.8m in escrow on 19 August.
Quetzal Capital (QTZ) says investee company Tap Global Ltd has launched a Crypto-as-a-Service product. This will enable regulated banks and financial service companies to offer cryptocurrency trading services to clients.
Diesel emission reduction additives supplier SulNOx Group (SNOX) increased revenues from £18,000 to £34,000 in the year to March 2022. There was £1.07m in cash in the balance sheet, although this fell to £604,000 by the end of June 2022.
Goodbody Health Inc has become Goodbody Health Ltd (GDBY) following the redomicile to Guernsey. Trading commenced in the new entity on Wednesday.
AIM
Rail and events software and services provider Tracsis (LON: TRCS) beat forecasts in the year to July 2022. finnCap has upgraded its earnings forecast from 33.2p a share to 34.5p a share. There was a sharp recovery in the events and traffic data business, while the other businesses continue to grow. Implementations of Tracsis software continue despite the rail strikes. The full year results will be published on 9 November.
Alumasc (ALU) is selling the poorly performing solar shading manufacturer and installer Levolux to Talrus Ltd, which is owned by Rcapital, for £1. Levolux has around £1.4m in cash and that is part of the disposal. There is deferred consideration of £1m which will be paid out of the proceeds of a disposal of the Levolux business. The impairment charge for Levolux will be £14.9m, while the £2m operating loss will be reported as a discontinued activity.
Corporate finance adviser Marechale Capital (MAC) increased pre-tax profit from £246,000 to £2.56m in the year to April 2022. That was mainly down to an increase in the value of investments and warrants. Fundraisings by Future Biogas, which postponed an AIM flotation, Chestnut Group and the Burgh Island Hotel were all at a premium to Marechale’s existing holdings. There was a cash outflow from operating activities of £131,000. NAV increased from £686,000 to £3.63m, or 3.8p a share.
First Property (FPO) has sold a property in Tureni, Romania for £3.05m, which is a book profit of £981,000. That leaves one fully owned property in Romania.
Rockwood Strategic (RKW) is planning to move to the Main Market in order to improve the tax efficiency by converting into an investment trust. The prospectus should be published by 6 September and the AIM cancellation could happen before the end of September.
Aquaculture products supplier Benchmark (BMK) increased third quarter revenues by 28% to £36.3m with a particularly strong performance by the genetics division. Sales of salmon eggs were 39% higher and shrimp sales were 164% ahead from a lower base. Investment in additional capacity in Iceland and the US is beginning to pay off. In the nine months to September 2022, underlying operating profit fell from £7.3m to £5.6m.
Australia-focused explorer Artemis Resources Ltd (ARV) says no significant nickel or copper mineralisation was shown from drilling samples at the Osborne nickel prospect. The approach to exploration will be reassessed. Two drill holes at its Greater Carlow project have not shown any sign of mineralisation, but that was not a surprise. A mineral resource estimate for Greater Carlow is expected in September and new targets have been identified. Two drill holes have been completed at the Apollo target at Paterson Central and it has re-entered a previous hole to drill deeper. This is near to the Greatland Gold (GGP) Havieron project.
Greatland Gold is raising £29.7m at 8.2p a share following Newcrest Mining’s decision not to take up the option to buy a further 5% stake in the Havieron gold project in Western Australia. Greatland Gold retains a 30% stake in Havieron. The price for the 5% stake had been set at $60m and much of that cash was earmarked to pay off loans from Newcrest Mining. The money raised will help to fund Greatland Gold’s share of further drilling and development expenses at Havieron, plus providing cash for other exploration activities in the Paterson region.
Alba Mineral Resources (LON: ALBA) has agreed to acquire the 10% minority interest in the company that owns the Clogau gold mine and plans to dewater the Llechfraith mine shaft. It is also buying back a 3% net smelter return royalty leaving a 1% net smelter royalty and £72,000 of loans held by the vendor. The total cost is £400,000 in the form of 200 million Alba shares at 0.2p each, which was a 25% premium to the closing price. There are also 81.9 million warrants exercisable at 0.4p each.
Haydale Graphene Industries (HAYD) is raising £5m at 2p a share and there is going to be an open offer at the same price that could raise up to £510,000.
Education provider Malvern International (MLVN) is benefiting from a recovery in student numbers following the easing of Covid restrictions. Interim revenues were 60% higher at £2.3m. Pre-booked and delivered revenues mean that full year revenues should be at least £5.3m.
Great Western Mining Corporation (GWMO) assay results for drilling at four prospects in Nevada. Results from the 2022 drill programme will start arriving in September. The drilling was completed under budget.
MAIN MARKET
Motor dealer Lookers (LOOK) generated a 4% increase in interim revenues to £2.23bn with lower used vehicle volumes offset by higher selling prices. Underlying pre-tax profit dipped from £50m to £47.2m, although that was higher than expected. Also, there was £12.7m of government support in the previous period. Full year pre-tax profit is expected to fall from £90.7m to £67m.
Oxford Cannabinoid Technologies (OCTP) is delaying the phase I trial of OCT130401 and concentrating on its first programme, OCT461201, where a phase I trial will start in January. This means that cash will last until the fourth quarter of 2023. There should be initial results from the phase I trial before then. Karen Lowe is stepping down as finance director.
BATM Advanced Communications (BVC) reported a decline in profit in the first half of 2022 after a sharp fall in diagnostics revenues because of Covid-boosted comparisons. Networking division revenues increased. Ongoing group revenues fell from £64.2m to £57.5m.
Packaging manufacturer and distributor Macfarlane Group (MACF) increased interim revenues by 14% to £139.2m, while pre-tax profit edged up from £8.59m to £8.86m. The growth in profit came from the manufacturing division. The interim dividend is 3% higher at 0.9p a share. Net debt is £9.7m.
Andrew Hore
Quoted Micro 7 February 2022
AQUIS STOCK EXCHANGE
SuperSeed Capital Ltd (WWW) raised £2m at 100p a share in order to invest in UK based seed technology companies alongside a related fund. The share price ended the week at 70p (65p/75p). The directors can issue up to 50 million additional shares up until 27 January 2027.
Samarkand Global (SMK) says that trading conditions in China will hamper progress for the rest of this financial year. Covid restrictions have hit trading during the Chinese New Year period. Revenues will be lower than expected and higher investment will increase the expected loss. Recent deals will help Samarkand grow in the longer-term, but there are also forecast reductions for the next two years. VSA no longer expects Samarkand to make a pre-tax profit in 2022-23.
Gunsynd (GUN) investee company Low6 has raised $5m and the sports betting platform company agreed to reverse into a Canadian shell, which will list on the TSX Venture Exchange. Gunsynd has raised A$493,000 (£260,000) from the sale of part of its stake in ASX-listed Charger Metals Ltd. This has raised the initial investment and left Gunsynd holding three million shares.
Capital for Colleagues (CFCP) is selling its A ordinary shares in The Homebuilding Centre back to the company in five tranches. There will be a minimum payment of £50,000 a year. This guarantees Capital for Colleagues will receive its initial investment of £250,000. It still owns 15% of the ordinary shares.
Cadence Minerals (KDNC) has raised £4.2m at 20.5p a share via a placing and subscription. A one-for-20 open offer could raise up to £1.52m. Cadence has to invest $6m in two stages to take a 27% stake in the Amapa iron ore project in Brazil.
CBD products supplier Love Hemp Group (LIFE) is attempting to raise £2m at 1p a share and still plans to move to the Main Market in the first quarter of 2022. There are also plans to swap shares for debt. The company is moving to a new facility consolidating all the activities. Chairman Andrew Male and chief executive Tony Calamita, along with others, will accept their remuneration in shares until June 2022. This reduces the cash outflow.
Property investor Ace Liberty and Stone (ALSP) increased its interim pre-tax profit from £674,000 to £755,000. That is after a loss on disposal of £315,000, although fair value losses reduced from £200,000 to £100,000. Rental income fell 3% to £2.89m. There are £3.05m of assets held for sale. Net assets were 333.1m at the end of October 2021, while net debt is £50.4m.
AQRU (AQRU) has acquired Bison Exchange UAB for €30,000. The acquisition has changed its name to Accru Finance. The company can provide virtual currency exchange and wallet custody operations in Lithuania.
KR1 (KR1) has invested $5m in Starry Night Capital, which is building a portfolio of high-profile non-fungible tokens.
Pioneer Media Holdings (PNER) has completed the acquisition of Bark Ventures, a NFT play-to-earn game developer, for 2.86 million shares.
Western Selection (WESP) has cut its stake in Northbridge Industrial Services (NBI) from 6.21% to 4.74% while Harwood Capital has increased its holding from 20.4% to 22.56%.
Helium Ventures (HEV) had £704,000 in cash at the end of October 2021. That is after a A$400,000 investment in Blue Star Helium, which has exploration projects in North America.
Quantum Exponential (QBIT) is still talking to potential investee companies. It owns 199,993 shares in Arqit Quantum, which has a contract with Virgin Orbit that covers two satellite launches.
Minerals explorer Altona Rare Earths (ANR) plans to continue to develop its rare earths projects Mozambique and Malawi to bankable feasibility study stage, as well as reviewing another acquisition that could be completed by the summer.
BWA Group (BWAP) reports that exploration of the 90%-owned mineral sands projects in Cameroon shows promising returns of rutile, ilmenite, kyanite and zircon over continuous zones.
Valereum (VLRM) has secured a $10m funding facility and this will help to finance the acquisition of the Gibraltar Stock Exchange. It has drawn down $3m which has to be repaid in six months of it can be converted into shares at 36.82p each, which is just below the current share price of 38p. There were also 663,302 warrants issued exercisable at 33.47p.
Clean Invest Africa (CIA) has raised £100,000 at 0.5p a share, with each two shares granted one warrant exercisable at 1.5p each.
AIM
NWF (NWF) reported a jump in interim profit. The fuel and food distribution businesses traded strongly with the former benefiting from concerns about supply shortages last autumn. The feeds business fell into loss, partly due to the loss of a distributor, and there was a £8.4m asset write down. Stripping out that exceptional, underlying pre-tax profit jumped from £2.5m to £4.3m. NWF maintained its interim dividend at 1p a share. Net debt was £7.4m at the end of November 2021. Management is seeking fuel distribution acquisitions to add to the regional network.
Wynnstay Group (WYN) has continued its record of increasing its dividend with an 18th consecutive rise. The total dividend improved from 14.6p a share to 15.5p a share. In the year to October 2021, underlying pre-tax profit was 37% higher at £11.4m. NAV is 525p a share. Wynnstay has increased market share in the feeds market, particularly for dairy and egg production. Agricultural merchanting operations benefited from the improved spending power of farmers. There could be a dip in profit this year.
Piling contractor Van Elle (VANL) improved its interim results and this led to an upgrade in full year forecasts. First half revenues were 57% ahead at £60m and it moved back into profit. Equipment usage levels have risen sharply. Net cash is £3.5m and this is enabling an increase in investment in new equipment. Van Elle had an order book of £39m at the end of 2021. Peel Hunt has increased its full year pre-tax profit forecast from £3m to £3.3m.
Hercules Site Services (HERC) originally raised £4m at 50.5p a share. The existing shareholder also raised £4m. Cirencester-based Hercules Site Services provides construction workers with a wide range of skills including carpenters, bricklayers, ground workers, security and site engineers. It also hires out suction excavators and sometimes there are cross selling opportunities with the labour supply business. More suction excavators are being acquired this year and there should be 20 following this fundraising. Demand for staff for infrastructure projects is increasing.
Electra Private Equity has sold all but one of its core investments, changed its name to Unbound Group (UBG) and moved to AIM. The remaining core business is footwear business Hotter. This is a direct to consumer business, although there are still 23 retail stores, down from 78 three years ago. One of Unbound’s main assets is its customer database. It hopes that selling additional products to that customer base will significantly improve profitability. The first sales of third-party products through the company’s website will be in the second quarter of 2022. The plan is to generate 50% of profit from these products.
Franchised lettings and estate agency business Belvoir Group (BLV) enjoyed a strong end to the year even though the stamp duty holiday ended in the autumn. The 2021 pre-tax profit forecast has been raised from £9.6m to £10m, while the £8.9m forecast for 2022 is maintained at £8.9m.
The Property Franchise Group (TPFG) continued to make strong progress in the fourth quarter despite the ending of the stamp duty holiday. There was a like-for-like increase of 26% in revenues, while the acquisition of Hunters Property meant that they more than doubled to £24.1m.
Freight forwarder and logistics company Xpediator (XPD) achieved 2021 revenues of more than £300m, compared with forecasts of £250m. The pre-tax profit will be much more than £8.5m.
MAIN MARKET
Shipbroker Braemar Shipping Services (BMS) says that 2021-22 revenues will be at least £101m because the strong first half trading has continued into the second six months to February 2022. Operating profit should be at least £9.8m, up from £7.7m. Talks continue about the disposal of Cory Brothers.
Constellation Automotive has taken a 19.9% stake in motor dealer Lookers (LOOK) at the same time as it is completing its takeover of Marshall Motor. This will put Constellation in a strong position if there is a takeover battle for Lookers.
Hiro Metaverse Acquisitions 1 (HMA1) is a SPAC seeking acquisitions in video games, esports and other related areas. It raised £115m at £10 a unit (one share and 0.5 of a warrant).
Andrew Hore
Quoted Micro 10 January 2022
AQUIS STOCK EXCHANGE
Hydrogen Utopia International (HUI) has agreed an exclusive, non-transferrable licence for the distributed modular gasification technology developed by Powerhouse Energy, and this covers Poland, Greece and Hungary. There is also an initial agreement in Bulgaria. The technology turns waste plastic into syngas. Hydrogen Utopia has raised £3m at 7.5p a share, which values the company at £28.8m. The share price has risen to 13.75p. There has already been work done on developing a facility in Poland. The initial cost could be €10m and the facility in Poland could be on stream in 2023. Hydrogen Utopia is targeting places where EU funding or private sector cash is available to finance investment. Even so, the company will need to raise more cash, but not for 18 months.
Vulcan Industries (VULC) increased interim revenues from £2.19m to £2.72m and the loss was reduced from £1.56m to £951,000. Third quarter activity is improving and the acquisition of Aftech should be completed during January, although the effective date is 1 December, and this will help the second half, as well as enhancing earnings. Vulcan has raised £224,000 at 1.6p a share.
British Honey Company (BHC) says that 2021 sales will be at least £8.4m and there is a strong order book for the first quarter of 2022. Production and dispatch will be consolidated at the Market Harborough distillery and the Buckinghamshire office and distillery will be closed.
Ace Liberty and Stone (ALSP) has exchanged contracts on the acquisition of a property in Stafford that is let to Iceland Foods. The purchase price is £1.26m and the annual rent is £95,000. Ace Liberty has raised £11.85m from disposals. There were £200,000 of convertible loans converted into shares and there is £375,000 of convertible loans outstanding.
Apollon Formularies (APOL) has renewed three medical cannabis licences approved by the Jamaican government.
EPE Special Opportunities (ESO) is stopping buying back its shares. It has bought 628,844 shares in the past month.
Trading in the bonds of Belvedere Leisure has been suspended because the annual report has not been published. The audit should be completed by the end of the month. Trading in Lombard Capital (LCAP) shares has also been suspended. Although the results for the year to June 2021 have been published Aquis has queried the audit report relating to the recoverability of loans. Lombard Capital has net liabilities of £1.57m.
AIM
Facilities by ADF (ADF) is the first AIM new admission of 2022. The company provides vehicles and services to the film and TV industry, predominantly in the UK but also in Europe. The £13m net raised at 50p a share that Facilities by ADF has raised will be invested in much needed additional capacity. The company is already nearly fully booked for this year. The company has a fleet of more than 500 vehicles and trailers. This includes artiste trailers, make-up units, generator units and transport vehicles. This could increase to 700 by the end of 2023. Unsurprisingly, revenues fell from £15.9m to £8m in 2020 because lockdowns affected TV and film production. There has been a sharp recovery in the first half of 2021 with revenues reaching £11.5m, which is nearly as much as in 2018.
Conroy Gold and Natural Resources (CGNR) has signed the joint venture agreement with Turkey-based Demir Export. This covers licences held along the 65km district scale gold trend in the Longford-Down Massif in Ireland. The plan is to develop an initial gold project and start mining. Phase 1 will involve Demir Export investing €5.5m to earn 25%, then another €4.5m to earn a further 15%. The final phase will involve the investment of additional funds by Demir Export so that the project will reach construction ready status. That will take the stake to 57.5%. Regulatory consent is still required.
Restaurants operator Tasty (TAST) says that second half trading was extremely encouraging, but December, normally the best month of the year, was disappointing because of Covid uncertainty. There are 50 restaurants trading with the other four due to reopen later this year. There are two or three restaurants that might be sold.
Nicholas Slater has increased his stake in upmarket kitchens supplier John Lewis of Hungerford (JLH) from 4.78% to 6.07%. John Llewellyn Lewis has reduced his stake from 22.15% to 19.57%, while non-exec Alan Charlton has bought 2.5 million shares at 1.2p a share, taking his stake to 8.73%.
MAIN MARKET
Slovenia-based Graft Polymer (GPL) is a developer of polymer modification and drug delivery systems. More than 50 products have been launched. In 2020, GraftBio was started to develop IP for biopharma applications. Revenues remain small but there are opportunities for them to grow significantly. The business should have strong operational gearing. A placing raised £5m at 21.5p a share. Graft Polymer intends to invest in capital equipment and further product development. A new production line will cost £2m and some of the other cash will go on lab upgrades and other investment. Management also wants to expand the distribution network and secure deals with more partners.
AdvancedAdvT (ADVT) has acquired 12 million shares in advertising agency M&C Saatchi (SAA) at 200p a share and the standard list shell approached the advertising agency with a bid proposition based on a share swap. AdvancedAdvT had £129.2m in the bank at the end of June 2021, so this investment is less than one-fifth of that cash. Vin Murria is a director of both companies, and she has a 13.2% stake in M&C Saatchi. The independent directors of M&C Saatchi say that they do not believe in the logic of a merger and also do not think the valuation put on the business is high enough.
Online retailer Made.com (MADE) says that the UK and Europe each achieved 38% growth over 2021. Average order values were 8% higher and active customers increased by 26%. The supply chain is a worry, but management says that lead times are three to four weeks. This follows the deferral of around £40m of sales to the first quarter of £40m. Made.com is still expected to lose money in 2021 before moving into profit in 2022.
Motor dealer Lookers (LOOK) has sparked another upgrade with its trading statement. Peel Hunt has increased its 2021 pre-tax profit forecast from £82.6m to £86.7m. Strong margins continued in the fourth quarter. However, those margins may not continue.
Macfarlane (MACF) has sold its labels business for £6.4m. This business generated a profit of £300,000 in 2020.
Andrew Hore
Andrew Hore – Quoted Micro 2 August 2021
AQUIS STOCK EXCHANGE
Brewer Shepherd Neame (SHEP) says trading has picked up since 12 April and was even better from 17 May. Beer volumes are good, but the company lost money in the year to June 2021. Between 12 April and 26 June managed pub revenues were 84% of the same time in 2019, while tenanted pubs achieved 77% of the volume in 2019. Tenanted pubs return to paying normal rent on 2 August. Net debt is £89.8m.
Brands owner and ecommerce technology platform operator Samarkand (SMK) increased its revenues by 201% in the year to March 2021, but that was flattered by one-off personal protective equipment revenues. Since the year end a Tokyo office has been opened. The latest technology, Nomad Checkout is being piloted.
Oberon Investments (OBE) more than trebled its revenues to £3.8m in the year to March 2021. Assets under administration increased by 340% to more than £550m and more investment management firms were acquired after the year end. The broking operation has already started to win clients and has raised £30m since June 2020. There were record first quarter revenues. Chris Akers has taken a 3.58% stake.
CBD and hemp products supplier Love Hemp (LIFE) has increased its full year revenues by 60% to £4.31m, although second half revenues were lower than those in the first half, which benefitted from large orders by Boots and Holland and Barrett. This year online revenues are expected to increase significantly.
NQ Minerals (NQMI) has requested that trading of the shares on Aquis should cease. There are problems with the company’s 2020 accounts. Begbies Traynor has been appointed to advise on restructuring, but the board is unsure whether the company can continue trading.
KR1 (KR1) has invested $100,000 in the Redstone project, which will be changed for tokens at a later date. Redstone is a cross-chain data oracle technology that provides fast access to data and historic audit trail. A further $269,892 was invested in Interlay for 1,224 series seed shares.
S-Ventures (SVEN) has acquired plant-based nutrition products supplier Pulsin for £2m in cash, £2m in loan notes and 15.18 million shares. The issue of three million of the shares is deferred and dependent on sales in 2021. Pulsin has net debt of £1.2m and generated sales of 37.05m in the year to April 2021. S-Ventures already owns Ohso Chocolate and snacks firm We Love Purely.
EPE Special Opportunities (ESO) has invested £22.5m for a majority stake in a company that owns homeware brands, including Kilner, Viners, Typhoon and Ravenhead. In 2020, revenues were £35.6m.
Dispersion Holdings (DEFI) had net cash of £8.8m at the end of July 2021. It has also invested £910,000 in decentralised finance investments.
Black Sea Property (BSP) is selling a property in Cyprus for €1.06m, compared with a valuation of €830,000.
Coinsilium (COIN) has moved to the Apex segment.
AIM
Big Technologies (BIG) provides remote and personal monitoring services, predominantly to the criminal justice market, and the technology has been developed over more than a decade. The company raised £14.7m after expenses at 200p a share. There was also £185.6m raised by existing shareholders, which sold around one-third of the shares in issue. In three days of trading the share price soared to 355p, which values the company at £1bn. Revenues increased from £19.3m in 2019 to £29.6m in 2020 thanks to new contracts and additional revenues from existing customers. Pre-tax profit jumped from £5.53m to £12.7m.
Tracsis (TRCS) has won a multi-year contract for its RailHub planning software. The deal is worth several million pounds, and this will make an initial high margin contribution to the financial year to July 2021. It sparked a £1m uplift in the 2021 profit forecast to £10.5m.
The Property Franchise Group (TPFG) has doubled interim revenues, helped by the Hunters acquisition early this year. Organic growth was 35%.
Hostels operator Safestay (SSTY) had a tough 2020 and has just published its 2020 figures. It achieved 38% occupancy in its hostels when they were open. The loss was £10m. NAV is £28.5m. Leasehold sales have helped to reduce bank debt to £18m in July 2021. There are 16 hostels currently trading and the other two are set to reopen.
Seed Innovations (SEED) has a 5.1% stake in Canadian Stock Exchange listed CDD and health products supplier Yooma Wellness Inc, which is joining Aquis on 10 August.
MAIN MARKET
Spinnaker Acquisitions (SPAQ) is a new cash shell that has been brought to the market by the same team that floated Spinnaker Opportunities, which eventually acquired cannabis products supplier Kanabo (KNB). It raised £2.08m at 10p a share. The share price has risen to 12.5p, but there is a wide spread of 10p/15p. Spinnaker is seeking to acquire a business in the sustainability and energy transition services markets.
Motor dealer Lookers (LOOK) outperformed the market in the first half of 2021 with a like-for-like increase in vehicle sales of 45%. The interim profit will be around £50m, which is one-fifth higher than previous expectations.
Andrew Hore
Andrew Hore – Quoted Micro 5 July 2021
AQUIS STOCK EXCHANGE
Voyager Life (VOY) is an early-stage company offering CBD-based products – including chewable sweets, bath products, oils and skincare products. The company has been in existence for around eight months and revenues are small. The first high street shop will be opened in St Andrews during July. Voyager Life raised £400,000 at 58p a share, but by the end of the first week of trading the share price has fallen to 40.5p (39p/42p) – possibly because of trading by crowdfunders that bought at 31p a share. Proforma cash appears to be around £2.4m, but there will have been expenses since the end of March. Greencare Capital (GRE) invested £100,000 and it is currently worth around £107,000.
Samarkand (SMK) reported 2020-21 revenues of £20.6m, including exceptional revenues of £5.8m, up from £6.8m. This enabled the ecommerce technology provider to make a positive EBITDA. There was £14.6m in the bank at the end of March 2021. A Tokyo office was opened in June. The full year results will be published before the end of July.
Revenues fell by more than two-thirds at pubs and brewery operator Daniel Thwaites (THW) and they were £32.2m in the year to March 2021. There was a swing from profit to loss. Net debt increased to £78.8m with monthly cash burn running at £1.5m during lockdown. There were £11.2m of additional bank facilities available and there have been subsequent disposals of non-core properties.
Polygon Global Partners has taken its stake in Watchstone Group (WTG) to above 30% and it is making a mandatory bid at 34p a share, valuing the company at £15.7m.
KR1 (KR1) increased its NAV from 5.72p a share to 28.97p a share at the end of 2020. Non-exec director Rhys Davies has exercised options over 767,236 shares at 19.55p each, which raised £150,000 for the company.
In 2020, Coinsilium Group (COIN) made a pre-tax profit of £310,000, compared with a loss of £259,000. That was mainly due to unrealised gains. The cash outflow from operating activities increased from £496,000 to £788,000. There was £173,000 in the bank.
NFT Investments (NFT) has conserved its cash despite declines in cryptocurrency values. It made a $440,000 gain on crypto token investments but has exited the market for the time being. There is still £34.1m of cash and stable coin, which is deemed to be less volatile because their value tends to be linked to the dollar, in the balance sheet, compared with a market value of £25.6m at 2.55p. How that figure is split between cash and stable coin is not stated.
In the nine months to December 2020, British Honey (BHC) generated revenues of £1.5m. Union Distillers was acquired in February 2021. There was cash of £2.95m at the end of March 2021.
Rogue Baron (SHNJ) has opened a second bar in Washington DC, called De Rhum Shot, and it is three times the size of the existing bar. Rogue Baron is investing £90,000 for a 51% stake and it is committed to a further payment of £20,000. Sales of Shinju whisky should reach 5,000 cases in 2021.
Secured Property Developments (SPD) had cash of £457,000 at the end of 2020 and net assets were £175,000. Management is seeking investment opportunities.
Chris Akers has taken a 3.09% stake in DiscovOre (ORE).
Valereum Blockchain (VLRM) completed the £1m placing at 70p a share.
AIM
Wynnstay (WYN) has gained market share in the animal feed market and the milk price remains at a level that provides confidence to farmers helping the retail operations to grow. In the six months to April 2021, revenues rose from £229.3m to £249.7m. Raw material prices have increased but Wynnstay has been able to pass them on and improve gross profit from £31.5m to £33.3m, which is the important measure. Underlying pre-tax profit improved from £4.5m to £5.5m. The interim dividend was raised by 9% to 5p a share.
The restructuring of Huricane Energy (HUR) has been rejected by the courts and that effectively means that the company has defaulted on the planned convertible bond repayments. The non-exec directors have resigned, and two directors appointed to replace them.
Digital marketing services and technology provider Silver Bullet Data Services (SBDS) raised £9.5m at 257p a share when it floated. This will be spent on further development of its 4D technology that helps brands to target advertising. 4D has been developed as an alternative to cookies that remains in line with current and likely regulations.
Specialist cleaning company React Group (REAT) increased interim revenues from £2.09m to £2.51m, while underlying pre-tax profit improved from £50,000 to £74,000. Fidelis was acquired too late in the period to make a significant contribution. Full year pre-tax profit is expected to increase from £188,000 to £784,000.
MAIN MARKET
Bermele (BERM) has agreed the acquisition of premium mixers supplier East Imperial Pte for £24.45m and it will be changing its name to East Imperial and raising £3m at 10p a share.
In 2020, Lookers (LOOK) increased its underlying pre-tax profit from £4m to £14.1m. The motor dealer is making annualised savings of £50m.
Highway Capital (HWC) says that it has whittled down potential acquisitions to a small number and is in discussions with one target. There is £41,000 in cash and net liabilities of £1.13m.
Wildcat Petroleum (WCAT) is focusing on Angola and Namibia in its search for oil and gas assets.
Media Tech SPAC is raising cash via Primary Bid ahead of a standard listing later this summer. The company wants to raise up to £6m at 10p a share. Areas of interest include digital technology, cyber security, social media, content distribution, virtual reality, gaming and interactive entertainment. Media Tech SPAC has previously raised £415,000 at 1p a share and £1.64m at 4p a share.
Ross Group (RGP) lost £1.46m in 2020. Net liabilities are £5m. Ross has acquired an aquaculture business, but it is yet to benefit from the investment put into this business.
Andrew Hore
Andrew Hore – Quoted Micro 12 April 2021
AQUIS STOCK EXCHANGE
Virgata Services is making a 50p a share cash offer for Walls & Futures REIT (WAFR) and that is a 52% discount to net assets at the end of September 2020. It is a premium to the market price prior to the announcement, but management recommends shareholders take no action. The bid values Walls & Futures REIT at £1.9m. Six shareholders own more than 80% of the company. Roy Nominees holds 33.2% and Standard Life Trustee Co Ltd holds 22.9%. Virgata is owned by the family office of the Goetstouwers family, and it has a property portfolio worth €80m, plus stakes in developments in the Netherlands. All the interests are outside of the UK.
Love Hemp (LIFE) plans to move to the Main Market later this year and has raised £5m at 3.5p a share. The cash will finance a global market campaign for its CBD and hemp products.
Sativa Wellness Inc (SWEL) has raised C$3.6m from the first tranche of its private placement. Sativa is offering two and eight day quarantine tests for travellers returning to the UK.
Good Energy (GOOD) is appointing Nigel Pocklington as chief executive. He is the former chief commercial director at Moneysupermarket.com. He starts on 1 May. Good Energy is making a further £1m investment, via a convertible, in electric vehicle mapping services provider Zap-Map’s parent company Next Green Car. Good Energy already owns 50.1% of Next Green Car. Zap-Map covers more than 95% of the UK public electric vehicle charging points.
KR1 (KR1) has invested a further $150,000 in Moonbeam Network for 30,000 GLMR tokens, taking the total owned to 130,000 tokens.
On 6 April, Coinsilium (COIN) $3.13m of cryptocurrency and tokens, up from $1.98m two months earlier.
Gunsynd (GUN) says that investee company Low 6 is on course to float in the second quarter of 2021. The B2B pool betting firm has 122,000 users.
Clean Invest Africa (CIA) has signed a memorandum of understanding Exagogi for the development of opportunities in India for CoalTech. India has high stockpiles of coal fines waste, which CoalTech can clean-up.
A general meeting has been requisitioned by shareholders at Early Equity (EEQP).
Evrensel Capital Partners has not subscribed the £250,000 for shares in Truspine Technologies (TSP) that it promised last September. TruSpine has raised £35,000 at 10p a share, taking the total raised in the latest fundraising to £620,500.
Tectonic Gold (TTAU) has raised £634,000 following the exercise of warrants at 0.7p each. Tectonic has raised A$215,000 from selling part of its holding in VOX Royalty Corp.
EPE Special Opportunities (ESO) had a nav of 448.15p a share at the end of March 2021.
Chris Akers has reduced his stake in Quetzal Capital (QTZ) from 17.2% to 12.3%.
Gowin New Energy (GWIN) has appointed Novum Securities as corporate adviser and trading in the shares has recommenced.
AIM
Minds + Machines (LSE: MMX) is selling its business and assets to GoDaddy for $120m (£87m) and this is equivalent to 8.8p a share, after transaction costs. ICANN needs to provide approval for the transfer of the top level domains. The company will become a shell.
Mobile phone and technology recycler and reseller musicMagpie could have an enterprise value of between £180m and £220m when it plans to join AIM later in April. The company buys and resells smartphones, computers, CDs, DVDs, books and other products that might have ended up in landfill. The market for pre-owned technology and media is estimated to be growing at 10% a year. In the year to November 2020, revenues were £153.4m and EBITDA was £13.9m.
Demand remains strong from the rail sector for software and consultancy services from Tracsis (TRCS), although the data and events businesses had a tougher time. Interim profit declined in the first half. finnCap forecasts a recovery in full year pre-tax profit from £8.3m to £9.1m, before a much larger increase in 2021-22 assuming trading is nearer to past levels. The Williams rail review is due to be published and this could provide additional opportunities for Tracsis.
International payment services provider Equals (EQLS) increased business revenues in 2020, but a slump in consumer revenues due to the lack of travel. Total revenues were 4% ahead at £29m and Equals made a small profit. In the first quarter of 2021, revenues were flat at £8m and again this masks business growth, plus the comparatives were strong in this period. Canaccord Genuity has upgraded its 2021 pre-tax profit forecast from £3.8m to £4.2m.
FIH Group (FIH) lost money in the UK last year, but this was more than offset by profits in the Falklands. The art distribution and Portsmouth Ferry operations were hit by Covid-19 lockdowns.
Oil palm plantation operator Dekel Agri-Vision (DKL) produced 71,500MT in the first quarter. Crude palm oil sales were 27% higher at 13,921MT and average realised prices are one-fifth higher. Dekel is on course to make a pre-tax profit in 2021.
Arena Events (ARE) has been successful in its bid for the business and assets of Aztec Schaffer. Arena will pay $3.35m for a 50% stake in a new joint venture owner of the assets and there will be a debt financing package of $18.25m.
MAIN MARKET
Sales of new and used cars by Lookers (LOOK) fell by 10% last year. However, it appears to have gained market share in new cars. Peel Hunt has increased its 2021 pre-tax profit forecast by £11m to £34.8m.
Stranger Holdings (STHP) has signed heads of terms to acquire Technology Minerals, which itself is involved in acquisitions of businesses producing battery raw materials and recycling batteries. These include Recyclus Group, which Stranger has previously considered buying. League of Angels founder Barney Battles has been appointed as a non-executive director.
Caerus Mineral Resources (CMRS) is acquiring PR Ploutonic Resources. This includes the Troulli, Kokkinapetra and St Nicholas copper and gold licences. Caerus is paying £750,000 in shares.
Argo Blockchain (ARB) says March revenues were at a record level of £6.57m. This reflects the installation of additional equipment and a higher bitcoin price.
Tirupati Graphite (TGR) achieved record graphite production in the first quarter of 2021. Work continues on increasing capacity at the Sahamamy project in Madagascar.
Anemoi International (AMOI) has raised £240,000 at 4p per depositary interest.
Andrew Hore